Common Tax Season Myths

In an effort to dispel some of the confusion that abounds during tax season, the IRS released a publication exposing the most commonly spread false tax and refund-related information. If you have unfiled taxes, have not received your refund, owe the IRS a substantial tax debt, or have another tax question, it is critical to speak with an experienced tax attorney before the filing deadline rolls around.

Almost all Tax Refunds are Delayed  

Many taxpayers are under the impression that most, if not all, refunds are delayed. The reality, however, is that delayed refunds are relatively rare, as the IRS issues more than nine out of ten refunds in less than three weeks. This is especially true for taxpayers who file their tax returns electronically and use direct deposit. However, this is not to say that refunds are never delayed. In fact, the IRS can’t even begin issuing refunds for tax returns for those who claim the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) before the middle of February. Because the IRS is required to hold the entire refund, and not just the part related to the credits, taxpayers who claim these credits may not receive their refunds until mid-March or later. According to the IRS, the earliest EITC/ACTC-related refunds won’t be made available to taxpayers until February 27th and this can only be expected when the taxpayer chose direct deposit and there are no other problems with the return. Delays can also often be chalked up to an effort to thoroughly review taxpayer information and so protect against refund fraud and identity theft.

Requesting a Tax Transcript Helps Taxpayers Determine Their Refund Date  

Many people are under the assumption that requesting a tax transcript will help them find out when they will receive their refund. However, in reality the information contained in a tax transcript doesn’t always reflect the timing or amount of a refund and while taxpayers can use these documents to validate some past information, they will be best served by checking the status of their refund using the “Where’s My Refund?” function on the IRS’ website.

The IRS Will Email or Call Taxpayers  

The IRS never initiates contact with taxpayers via text message, social media, or email to request financial or personal information. They will also never use the following tactics:

• Calling to request payment using a specific method;
• Threaten to contact the police if outstanding debts aren’t paid;
• Ask for credit or debit card numbers over the phone; or
• Request that taxes be paid without allowing the taxpayer to inquire about the amount.

When someone purporting to be a government agency uses these methods, the taxpayer is most likely being targeted as part of a scam and should report it to the IRS immediately.

Call Today to Learn More About Filing Your Taxes  

If you have a tax-related question or concern, please call 386-490-9949 to speak with experienced Florida tax attorney Ronald Cutler, P.A. today. Our legal team is eager to assist you with your case.

Resource:

irs.gov/newsroom/to-help-taxpayers-irs-clarifies-some-common-early-filing-season-myths